Federal Register / Vol. 75, No. 37 / Thursday, February 25, 2010 / Notices 8703

Federal Communications Commission. advise the contact listed below as soon Commission concluded that mandatory, Marlene H. Dortch, as possible. minimum standards are needed in light Secretary, ADDRESSES: Direct all PRA comments to of record evidence demonstrating that Office of the Secretary, Nicholas A. Fraser, Office of information needed by carriers to Office of Managing Director. Management and Budget (OMB), via fax execute customer requests and properly [FR Doc. 2010–3840 Filed 2–24–10; 8:45 am] at (202) 395–5167, or via e–mail at bill customers is not being consistently _ _ provided by all LECs and IXCs. BILLING CODE 6712–01–S Nicholas A. [email protected] and to Cathy Williams, Federal Specifically, the 2005 Report and Order Communications Commission (FCC), via requires LECs to supply customer FEDERAL COMMUNICATIONS e–mail at [email protected] and account information to IXCs when: (1) COMMISSION to [email protected]. the LEC places an end user on, or FOR FURTHER INFORMATION CONTACT: For removes an end user from, an IXC’s Notice of Public Information Collection additional information about the network; (2) an end user presubscribed Being Reviewed by the Federal information collection send an e–mail to to an IXC makes certain changes to her Communications Commission, [email protected] or contact Cathy Williams account information via her LEC; (3) an Comments Requested on (202) 418–2918. IXC requests billing name and address information for an end user who has SUPPLEMENTARY INFORMATION: 02/19/2010. usage on an IXC’s network but for whom OMB Control Number: 3060–1084. SUMMARY: The Federal Communications the IXC does not have an existing Title: Rules and Regulations Commission, as part of its continuing account; and (4) a LEC rejects an IXC– Implementing Minimum Customer effort to reduce paperwork burden initiated PIC order. The 2005 Report and Account Record Exchange Obligations invites the general public and other Order requires IXCs to notify LECs on All Local and Interexchange Carriers Federal agencies to take this when an IXC customer informs an IXC opportunity to comment on the (CARE). Form Number: N/A. directly of the customer’s desire to following information collection, as Type of Review: Revision of a change IXCs. In the accompanying required by the Paperwork Reduction currently approved collection. Further Notice of Proposed Rulemaking, Act of 1995, 44 U.S.C. 3501–3520. An Respondents: Business or other for– the Commission sought comment on agency may not conduct or sponsor a profit entities. whether to require the exchange of collection of information unless it Number of Respondents and customer account information between displays a currently valid control Responses: 2,242 respondents; 492,906 LECs. In December 2007, The number. No person shall be subject to responses. Commission declined to adopt any penalty for failing to comply with Estimated Time per Response: 1 mandatory LEC–to–LEC data exchange a collection of information subject to the minute (.017 hours) to 20 minutes (.33 requirements. Paperwork Reduction Act (PRA) that hours). Federal Communications Commission. does not display a valid control number. Frequency of Response: Marlene H. Dortch, Comments are requested concerning (a) Recordkeeping requirement; Annual whether the proposed collection of Secretary, reporting requirement. Office of the Secretary, information is necessary for the proper Obligation to Respond: Required to performance of the functions of the Office of Managing Director. obtain or retain benefits. The statutory [FR Doc. 2010–3839 Filed 2–24–10; 8:45 am] Commission, including whether the authority for this information collection BILLING CODE 6712–01–S information shall have practical utility; is contained in Sections 1–4, 201, 202, (b) the accuracy of the Commission’s 222, 258, and 303(r) of the burden estimate; (c) ways to enhance Communications Act of 1934, as the quality, utility, and clarity of the FEDERAL COMMUNICATIONS amended; 47 U.S.C. §§ 151–154, 201, COMMISSION information collected; (d) ways to 202, 222, 258, and 303(r). minimize the burden of the collection of Total Annual Burden: 40,885 hours. [AU Docket No. 09–205; DA 10–18] information on the respondents, Total Annual Cost: None. Auction of Lower and Upper Paging including the use of automated Nature and Extent of Confidentiality: Bands Licenses Scheduled for May 25, collection techniques or other forms of Confidentiality is not an issue as 2010; Notice and Filing Requirements, information technology and (e) ways to individuals and/or households are not Minimum Opening Bids, Upfront further reduce the information burden required to provide personally Payments, and Other Procedures for for small business concerns with fewer identifiable information. Auction 87 than 25 employees. Privacy Impact Assessment: No The FCC may not conduct or sponsor impact(s). AGENCY: Federal Communications a collection of information unless it Needs and Uses: In the 2005 Report Commission. displays a currently valid control and Order and Further Notice of ACTION: Notice. number. No person shall be subject to Proposed Rulemaking, In the Matter of any penalty for failing to comply with Rules and Regulations Implementing SUMMARY: This document announces the a collection of information subject to the Minimum Customer Account Record procedures and minimum opening bids Paperwork Reduction Act (PRA) that Exchange Obligations on All Local and for the upcoming auction of Lower and does not display a valid control number. Interexchange Carriers (2005 Report and Upper Bands Licenses (Auction 87). DATES: Persons wishing to comment on Order), CG Docket No. 02–386, FCC 05– This document is intended to this information collection should 29, which was released on February 25, familiarize prospective bidders with the submit comments by April 26, 2010. If 2005, the Commission adopted rules procedures and minimum opening bids you anticipate that you will be governing the exchange of customer for the auction. submitting comments, but find it account information between local DATES: Applications to participate in difficult to do so within the period of exchange carriers (LECs) and Auction 87 must be filed prior to 6 p.m. time allowed by this notice, you should interexchange carriers (IXCs). The Eastern Time (ET) on March 16, 2010.

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Bidding for licenses in Auction 87 is 9,603 licenses for lower and upper requirements, and obligations of scheduled to begin on May 25, 2010. paging bands spectrum. This auction, Commission licensees. FOR FURTHER INFORMATION CONTACT: which is designated as Auction 87, is 5. The terms contained in the Wireless Telecommunications Bureau, scheduled to commence on May 25, Commission’s rules, relevant orders, Auctions and Spectrum Access Division: 2010. On November 30, 2009, the and public notices are not negotiable. For legal questions: Scott Mackoul at Bureau released a public notice seeking The Commission may amend or (202) 418–0660. For general auction comment on competitive bidding supplement the information contained questions: Roy Knowles or Barbara procedures to be used in Auction 87. in its public notices at any time, and Sibert at (717) 338–2868. Mobility Interested parties submitted 1 comment will issue public notices to convey any Division: For licensing information and and 1 reply comment in response to the new or supplemental information to service rule questions: Michael Auction 87 Comment Public Notice, 74 applicants. It is the responsibility of all Connelly (legal) or Melvin Spann FR 67221, December 18, 2009. applicants to remain current with all (technical) at 202–418–0620. To request Commission rules and with all public i. Licenses to be Offered in Auction 87 materials in accessible formats (Braille, notices pertaining to this auction. large print, electronic files or audio 2. Auction 87 will offer 9,603 paging ii. Prohibited Communications and format) for people with disabilities, licenses consisting of 7,752 licenses in Compliance With Antitrust Laws send an e-mail to [email protected] or call the lower paging bands (35 MHz, 43 the Consumer and Governmental Affairs MHz, 152 and 158 MHz, 454 and 459 6. To ensure the competitiveness of Bureau at (202) 418–0530 or (202) 418– MHz) and 1,851 licenses in the upper the auction process, 47 CFR 1.2105(c) 0432 (TTY). paging bands (929 MHz and 931 MHz). prohibits auction applicants for licenses in any of the same geographic license SUPPLEMENTARY INFORMATION: This is a Auction 87 will include licenses that areas from communicating with each summary of the Auction 87 Procedures remained unsold from a previous other about bids, bidding strategies, or Public Notice, which was released on auction, licenses on which a winning settlements unless such applicants have January 22, 2010. The complete text of bidder in a previous auction defaulted, identified each other on their short-form the Auction 87 Procedures Public and licenses for spectrum previously applications (FCC Form 175) as parties Notice, including attachments, as well associated with licenses that cancelled as related Commission documents, are or terminated. In a few cases, the with whom they have entered into available for public inspection and available license does not cover the agreements pursuant to 47 CFR copying from 8 a.m. to 4:30 p.m. ET entire geographic area due to an 1.2105(a)(2)(viii). Monday through Thursday and from 8 excluded area or previous partitioning. a. Entities Subject to Section 1.2105 3. Attachment A of the Auction 87 a.m. to 11:30 a.m. ET on Fridays in the 7. The prohibited communication Procedures Public Notice provides a FCC Reference Information Center, 445 provisions of 47 CFR 1.2105(c) will summary of the licenses available in 12th Street, SW., Room CY—A257, apply to any applicants that submit Auction 87. Due to the large number of Washington, DC 20554. The Auction 87 short-form applications seeking to licenses in Auction 87, the complete list Procedures Public Notice and related participate in a Commission auction and of licenses available for this auction will Commission documents may also be select licenses in the same or be provided in electronic format only, purchased from the Commission’s overlapping markets. In Auction 87, the available as separate Attachment A files duplicating contractor, Best Copy and rule would prohibit any applicants that at http://wireless.fcc.gov/auctions/87/. Printing, Inc. (BCPI), Portals II, 445 12th have selected any of the same licenses Tables containing the block/frequency Street, SW., Room CY–B402, or licenses with overlapping markets in cross-reference list for the paging bands Washington, DC 20554, telephone 202– their short form applications from are included in Attachment B of the 488–5300, facsimile 202–488–5563, or communicating absent a disclosed Auction 87 Procedures Public Notice. Web site: http://www.BCPIWEB.com, agreement. using document number DA 10–18 for B. Rules and Disclaimers 8. Under the terms of the rule, the Auction 87 Procedures Public applicants that have applied for licenses Notice. The Auction 87 Procedures i. Relevant Authority covering the same or overlapping Public Notice and related documents are 4. Prospective applicants must markets—unless they have identified also available on the Internet at the familiarize themselves thoroughly with each other on their short form Commission’s Web site: http:// the Commission’s general competitive applications as parties with whom they wireless.fcc.gov/auctions/87/. Due to the bidding rules set forth in Title 47, Part have entered into agreements under 47 large number of licenses in Auction 87, 1, Subpart Q of the Code of Federal CFR 1.2105(a)(2)(viii)—must the complete list of licenses available Regulations, including all amendments affirmatively avoid all communications for this auction has been provided in and clarifications; rules relating to the with or disclosures to each other that electronic format only, available as lower and upper paging bands and affect or have the potential to affect bids separate ‘‘Attachment A’’ files at emerging technologies contained in or bidding strategy, which may include http://wireless.fcc.gov/auctions/87/. A Title 47, Part 22 and Part 90 of the Code communications regarding the post- paper copy of the complete list of of Federal Regulations; and rules auction market structure. This licenses and any other documents relating to applications, environment, prohibition applies to all applicants relating to Auction 87 may also be practice and procedure contained in regardless of whether such applicants purchased from the Commission’s Title 47, Part 1, Subpart I of the Code become qualified bidders or actually duplicating contractor, BCPI. of Federal Regulations. Prospective bid. I. General Information applicants must also be thoroughly 9. For purposes of this prohibition, 47 familiar with the procedures, terms and CFR 1.2105(c)(7)(i) defines applicant as A. Introduction conditions (collectively, terms) including all officers and directors of 1. The Wireless Telecommunications contained in this Public Notice and in the entity submitting a short-form Bureau (Bureau) announces the the Commission’s decisions in application to participate in the auction, procedures and minimum opening bid proceedings regarding competitive all controlling interests of that entity, as amounts for the upcoming auction of bidding procedures, application well as all holders of partnership and

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other ownership interests and any stock bids or bidding strategy. While 47 CFR minimum, applicants should certify on interest amounting to 10 percent or 1.2105(c) does not prohibit business their applications that precautionary more of the entity, or outstanding stock, negotiations among auction applicants, steps have been taken to prevent or outstanding voting stock of the entity applicants must remain vigilant so as communication between authorized submitting a short-form application. not to communicate directly or bidders and that applicants and their 10. Information concerning indirectly information that affects, or bidding agents will comply with the 47 applicants’ license selections will not be could affect, bids or bidding strategy, or CFR 1.2105(c) prohibition on certain available to the public. Therefore, the the negotiation of settlement communications. Commission will inform each applicant agreements. 17. A violation of 47 CFR 1.2105(c) by letter of the identity of each of the 14. The Commission remains vigilant could occur in other contexts, such as other applicants that has applied for about communications taking place in an individual serving as an officer for licenses covering any of the same or other situations. For example, the two or more applicants. Moreover, the overlapping geographic areas as the Commission has warned that prohibited Commission has found a violation of the licenses that it has selected in its short- communications concerning bids and rule where a bidder used the form application. bidding strategies may include Commission’s bidding system to 11. Entities and parties subject to 47 communications regarding capital calls disclose its bidding strategy in a manner CFR 1.2105(c)’s prohibition on certain or requests for additional funds in that explicitly invited other auction communications should take special support of bids or bidding strategies to participants to cooperate and care in circumstances where their the extent such communications convey collaborate in specific markets, and has employees may receive information information concerning the bids and placed auction participants on notice directly or indirectly from a competing bidding strategies directly or indirectly. that the use of its bidding system to applicant relating to any competing 15. Applicants are hereby placed on disclose market information to applicant’s bids or bidding strategies. In notice that disclosure of information competitors will not be tolerated and situations where 47 CFR 1.2105(c)(7)(i) relating to bidder interests and bidder will subject bidders to sanctions. views the same person as the applicant identities that has not yet been made with respect to two different entities public by the Commission at the time of 18. In addition, when completing filing competing applications, under disclosure may violate the provisions of short-form applications, applicants Bureau precedent the bids and bidding 47 CFR 1.2105(c) that prohibit certain should avoid any statements or strategies of one applicant are communications. This is so even though disclosures that may violate 47 CFR necessarily conveyed to the other and, similar types of information were 1.2105(c), particularly in light of the absent a disclosed bidding agreement, revealed prior to and during other limited information procedures in effect an apparent violation of the rule occurs. Commission auctions subject to for Auction 87. Specifically, applicants The Bureau has not addressed situations different information procedures. should avoid including any information where employees who do not qualify as Bidders should use caution in their in their short-form applications that the applicant (e.g., are not officers or dealings with other parties, such as might convey information regarding directors) receive information regarding members of the press, financial analysts, their license selection, such as using a competing applicant’s bids or bidding or others who might become a conduit applicant names that refer to licenses strategies and thus has not ruled on for the communication of prohibited being offered, referring to certain whether that information might be bidding information. For example, licenses or markets in describing deemed to be necessarily conveyed to where limited information disclosure bidding agreements, or including any the applicant. The Bureau notes that the procedures are in place, as for Auction information in attachments that may exception to 47 CFR 1.2105(c) providing 87, a qualified bidder’s statement to the otherwise disclose applicants’ license that non-controlling interest holders press that it has lost bidding eligibility selections. may have interests in more than one and stopped bidding in the auction d. Disclosure of Bidding Agreements competing bidder without violating the could give rise to a finding of a violation and Arrangements rule, provided specified conditions are of 47 CFR 1.2105(c). Similarly, an met (including a certification that no applicant’s public statement of intent 19. The Commission’s rules do not prohibited communications have not to participate in Auction 87 bidding prohibit applicants from entering into occurred or will occur), does not extend could also violate the rule. otherwise lawful bidding agreements to controlling interest holders. 16. Applicants selecting licenses for before filing their short-form any of the same or overlapping applications, as long as they disclose the b. Prohibition Applies Until Down geographic license areas must not existence of the agreement(s) in their Payment Deadline communicate directly or indirectly short-form applications. If parties agree 12. 47 CFR 1.2105(c)’s prohibition on about bids or bidding strategy. in principle on all material terms prior certain communications take effect at Accordingly, such applicants are to the short-form application filing the short-form application filing encouraged not to use the same deadline, each party to the agreement deadline and continue until the down individual as an authorized bidder. A must identify the other party or parties payment deadline after the auction. violation of 47 CFR 1.2105(c) could to the agreement on its short-form occur if an individual acts as the application, even if the agreement has c. Prohibited Communications authorized bidder for two or more not been reduced to writing. If the 13. Applicants for the upcoming competing applicants, and conveys parties have not agreed in principle by Auction 87 and other parties that may information concerning the substance of the short-form application filing be engaged in discussion with such bids or bidding strategies between such deadline, they should not include the applicants are cautioned on the need to applicants. Also, if the authorized names of parties to discussions on their comply with 47 CFR 1.2105(c). The rule bidders are different individuals applications, and they may not continue prohibits not only a communication employed by the same organization negotiations, discussions, or about an applicant’s own bids or (e.g., law firm or engineering firm or communications with any other bidding strategy, but also a consulting firm), a violation similarly applicants for licenses covering any of communication of another applicant’s could occur. In such a case, at a the same or overlapping geographic

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areas after the short-form application is made, even if the report is not made should be submitted by e-mail at the filing deadline. within the five day period. following address: [email protected], 24. In addition, 47 CFR 1.65 of the or delivered to the following address: e. Section 1.2105(c) Certification Commission’s rules requires an Margaret W. Wiener, Chief, Auctions 20. By electronically submitting a applicant to maintain the accuracy and and Spectrum Access Division, Wireless short-form application following the completeness of information furnished Telecommunications Bureau, Federal electronic filing procedures set forth in in its pending application and to notify Communications Commission, 445 12th Attachment C of the Auction 87 the Commission of any substantial Street, SW., Room 6423, Washington, Procedures Public Notice, each change that may be of decisional DC 20554. Parties submitting such a applicant certifies its compliance with significance to that application. Thus, report should include a cover sheet to 47 CFR 1.2105(c). However, the Bureau 47 CFR 1.65 requires an auction avoid the inadvertent dissemination of cautions that merely filing a certifying applicant to notify the Commission of information contained in the report. statement as part of an application will any substantial change to the 28. A party seeking to report such not outweigh specific evidence that information or certifications included in prohibited communications should prohibited behavior has occurred, nor its pending short-form application. consider submitting its report with a will it preclude the initiation of an Applicants are therefore required by 47 request that the report or portions of the investigation when warranted. The CFR 1.65 to report to the Commission submission be withheld from public Commission has stated that it intends to any communications of bids or bidding inspection. Such parties are also scrutinize carefully any instances in strategies that result in a bidding encouraged to consult with the Auctions which bidding patterns suggest that arrangement, agreement, or and Spectrum Access Division staff if collusion may be occurring. Any understanding after the short-form filing they have any questions about the applicant found to have violated 47 CFR application deadline. procedures for submitting such reports. 1.2105(c) may be subject to sanctions. 25. The Commission recently Applicants must be aware that failure to amended 47 CFR 1.65(a) and 1.2105(c) f. Antitrust Laws comply with the Commission’s rules to require applicants in competitive can result in enforcement action. 21. Applicants are also reminded that, bidding proceedings to furnish regardless of compliance with the additional or corrected information h. Winning Bidders Must Disclose Commission’s rules, they remain subject within five days of a significant Terms of Agreements to the antitrust laws, which are designed occurrence, or to amend their short-form 29. Applicants that are winning to prevent anticompetitive behavior in applications no more than five days bidders will be required to disclose in the marketplace. Compliance with the after the applicant becomes aware of the their long-form applications the specific disclosure requirements of 47 CFR need for amendment. The Commission terms, conditions, and parties involved 1.2105(c) will not insulate a party from made this change to facilitate the in any bidding consortia, joint ventures, enforcement of the antitrust laws. For auction process, by making the partnerships, and other arrangements instance, a violation of the antitrust information available promptly to all entered into relating to the competitive laws could arise out of actions taking participants and enabling the Bureau to bidding process. place well before any party submits a act expeditiously on those changes short-form application. when such action is necessary. i. Additional Information Concerning 22. To the extent the Commission 26. Parties reporting communications Rule Prohibiting Certain becomes aware of specific allegations pursuant to 47 CFR 1.65 or 1.2105(c)(6) Communications that suggest that violations of the federal must take care to ensure that any such 30. A summary listing of documents antitrust laws may have occurred, the reports of prohibited communications issued by the Commission and the Commission may refer such allegations do not themselves give rise to a Bureau addressing the application of 47 to the United States Department of violation of 47 CFR 1.2105(c). For CFR 1.2105(c) may be found in Justice for investigation. If an applicant example, a party’s report of a prohibited Attachment E of the Auction 87 is found to have violated the antitrust communication could violate the rule Procedures Public Notice. laws or the Commission’s rules in by communicating prohibited connection with its participation in the information to other applicants through iii. Incumbency Issues competitive bidding process, it may be the use of Commission filing procedures 31. There are pre-existing paging subject to forfeiture of its upfront that would allow such materials to be incumbent licenses, including public payment, down payment, or full bid made available for public inspection. safety entities licensed under either 47 amount and may be prohibited from 27. The Commission recently U.S.C. 337 or 47 CFR 1.925. Incumbent participating in future auctions, among amended 47 CFR 1.2105(c) to minimize (non-geographic) paging licensees other sanctions. the risk of inadvertent dissemination by operating under their existing requiring parties to file only a single authorizations are entitled to full g. Duty To Report Prohibited report and to file that report with protection from co-channel interference. Communications; Reporting Procedure Commission personnel expressly Geographic area licensees are likewise 23. 47 CFR 1.2105(c)(6) provides that charged with administering the afforded co-channel interference any applicant that makes or receives a Commission’s auctions. Pursuant to the protection from incumbent licensees. communication that appears to violate amended rule, any reports required by Adjacent geographic area licensees are 47 CFR 1.2105(c) must report such 47 CFR 1.2105(c) must be filed obligated to resolve possible communication in writing to the consistent with the instructions set forth interference concerns of adjacent Commission immediately, and in no in the Auction 87 Procedures Public geographic area licensees by negotiating case later than five business days after Notice. For Auction 87, such reports a mutually acceptable agreement with the communication occurs. The should be filed with the Chief of the the neighboring geographic licensee. Commission has clarified that each Auctions and Spectrum Access applicant’s obligation to report any such Division, Wireless Telecommunications a. International Coordination communication continues beyond the Bureau, by the most expeditious means 32. Potential bidders seeking licenses five-day period after the communication available. Specifically, any such reports for geographic areas adjacent to the

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Canadian and Mexican border should be participation in this auction and their 39. Applicants should perform due aware that the use of some or all of the bidding strategy. diligence to identify and consider all channels they acquire in the auction 36. Potential bidders are reminded proceedings that may affect the could be restricted as a result of current that they are solely responsible for spectrum licenses being auctioned and or future agreements with Canada or investigating and evaluating all that could have an impact on the Mexico. Licensees on the lower paging technical and marketplace factors that availability of spectrum for Auction 87. channels must submit an FCC Form 601 may have a bearing on the value of the In addition, although the Commission to obtain authorization to operate licenses being offered in this auction. may continue to act on various pending stations north of Line A or east of Line The Commission makes no applications, informal objections, C because these channels are subject to representations or warranties about the petitions, and other requests for the Above 30 Megacycles per Second use of this spectrum for particular Commission relief, some of these Agreement with Industry Canada. services. Applicants should be aware matters may not be resolved by the Although the upper paging channels do that a Commission auction represents an beginning of bidding in the auction. not require coordination with Canada, opportunity to become a licensee 40. Applicants are solely responsible the U.S.-Canada Interim Coordination subject to certain conditions and for identifying associated risks and for Considerations for the Band 929–932 regulations. The auction does not investigating and evaluating the degree MHz, as amended, assigns specific 929 constitute an endorsement by the to which such matters may affect their MHz and 931 MHz frequencies to the Commission of any particular service, ability to bid on, otherwise acquire, or United States for licensing along certain technology, or product, nor does a make use of licenses being offered. longitudes above Line A, and assigns Commission license constitute a 41. Potential bidders may research the other specific 929 MHz and 931 MHz guarantee of business success. Bureau’s licensing database on the frequencies to Canada for licensing Applicants should perform their Internet in order to determine which along certain longitudes along the U.S.- individual due diligence before frequencies are already licensed to Canada border. In addition, the 929 proceeding as they would with any new incumbent licensees. Applicants may obtain information about licenses MHz and 931 MHz frequencies assigned business venture. available in Auction 87 through the to Canada are unavailable for use by 37. Potential bidders are strongly Bureau’s online licensing databases at U.S. licensees above Line A as set out encouraged to conduct their own in the agreement. http://wireless.fcc.gov/uls. Applicants research prior to the beginning of may query the database online and b. Quiet Zones bidding in Auction 87 in order to download a copy of their search results 33. Paging licensees must determine the existence of any pending if desired. individually apply for and receive a legislative, administrative, or judicial 42. The Commission makes no separate license for each transmitter if proceedings that might affect their representations or guarantees regarding the proposed operation would affect the decision regarding participation in the the accuracy or completeness of radio quiet zones set forth in the auction. Participants in Auction 87 are information in its databases or any third Commission’s rules. strongly encouraged to continue such party databases, including, for example, research throughout the auction. In court docketing systems. To the extent iv. Due Diligence addition, potential bidders should the Commission’s databases may not 34. Potential bidders are reminded perform technical analyses sufficient to include all information deemed that there are a number of incumbent assure themselves that, should they necessary or desirable by an applicant, licensees already licensed and operating prevail in competitive bidding for a applicants may obtain or verify such on frequencies that will be subject to the specific license, they will be able to information from independent sources upcoming auction. Geographic area build and operate facilities that will or assume the risk of any licensees in accordance with the fully comply with the Commission’s incompleteness or inaccuracy in said Commission’s rules must protect such technical and legal requirements as well databases. Furthermore, the incumbents from harmful interference. as other applicable Federal, state, and Commission makes no representations These limitations may restrict the ability local laws. or guarantees regarding the accuracy or of such geographic area licensees to use 38. Applicants should also be aware completeness of information that has certain portions of the electromagnetic that certain pending and future been provided by incumbent licensees spectrum or provide service to certain proceedings, including rulemaking and incorporated into its databases. areas in their geographic license areas. proceedings or petitions for rulemaking, 43. Potential applicants are strongly 35. The Bureau cautions potential applications (including those for encouraged to physically inspect any applicants formulating their bidding modification), requests for special prospective sites located in, or near, the strategies to investigate and consider the temporary authority, waiver requests, geographic area for which they plan to extent to which these frequencies are petitions to deny, petitions for bid, and also to familiarize themselves occupied. For example, there are reconsideration, informal oppositions, with the environmental review incumbent operations already licensed and applications for review, before the obligations described in the Auction 87 and operating in the bands that must be Commission may relate to particular Procedures Public Notice. protected. These limitations may restrict applicants or incumbent licensees or the the ability of paging licensees to use licenses available in Auction 87. v. Use of Integrated Spectrum Auction certain portions of the electromagnetic Pending and future judicial proceedings System spectrum or provide service to certain may also relate to particular applicants 44. The Commission will make areas in their geographic license areas. or incumbent licensees, or to the available a browser-based bidding Bidders should become familiar with licenses available in Auction 87. system to allow bidders to participate in the status of these operations and Prospective bidders are responsible for Auction 87 over the Internet using the applicable Commission rules, orders assessing the likelihood of the various Commission’s Integrated Spectrum and any pending proceedings related to possible outcomes, and considering Auction System (ISAS or FCC Auction the service, in order to make reasoned, their potential impact on spectrum System). The Commission makes no appropriate decisions about their licenses available in this auction. warranty whatsoever with respect to the

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FCC Auction System. In no event shall Mock Auction ...... May 21, 2010. other things, if the applicant is eligible the Commission, or any of its officers, Auction Begins ...... May 25, 2010. for a bidding credit. employees or agents, be liable for any 52. Applicants bear full responsibility iv. Requirements for Participation damages whatsoever (including, but not for submitting accurate, complete and limited to, loss of business profits, 49. Those wishing to participate in timely short-form applications. All business interruption, loss of business this auction must: (1) Submit a short- applicants must certify on their short- information, or any other loss) arising form application (FCC Form 175) form applications under penalty of out of or relating to the existence, electronically prior to 6 p.m. ET, March perjury that they are legally, technically, furnishing, functioning or use of the 16, 2010, following the electronic filing financially and otherwise qualified to FCC Auction System that is accessible procedures set forth in Attachment C of hold a license. Applicants should read to qualified bidders in connection with the Auction 87 Procedures Public this auction. Moreover, no obligation or the instructions set forth in Attachment Notice; (2) submit a sufficient upfront liability will arise out of the C carefully and should consult the Commission’s technical, programming payment and an FCC Remittance Advice Commission’s rules to ensure that, in or other advice or service provided in Form (FCC Form 159) by 6 p.m. ET, addition to the materials all the connection with the FCC Auction April 23, 2010, following the procedures information that is required under the System. and instructions set forth in Attachment Commission’s rules is included with D of the Auction 87 Procedures Public their short-form applications. vi. Environmental Review Requirements Notice; and (3) comply with all 53. An entity may not submit more 45. Licensees must comply with the provisions outlined in the Auction 87 than one short-form application for a Commission’s rules regarding Procedures Public Notice and applicable single auction. If a party submits implementation of the National Commission rules. multiple short-form applications, only Environmental Policy Act and other II. Short-Form Application (FCC Form one application may become qualified federal environmental statutes. The 175) Requirements to bid. construction of a wireless antenna facility is a federal action, and the A. General Information Regarding 54. Applicants also should note that licensee must comply with the Short-Form Applications submission of a short-form application (and any amendments thereto) Commission’s environmental rules for 50. An application to participate in an each such facility. constitutes a representation by the FCC auction, referred to as a short-form certifying official that he or she is an C. Auction Specifics application or FCC Form 175, provides authorized representative of the information used in determining i. Auction Start Date applicant, that he or she has read the whether the applicant is legally, form’s instructions and certifications, 46. Bidding in Auction 87 will begin technically, and financially qualified to and that the contents of the application, on Tuesday, May 25, 2010, as participate in Commission auctions for its certifications, and any attachments announced in the Auction 87 Comment licenses or permits. The short-form are true and correct. An applicant Public Notice. The initial schedule for application is the first part of the cannot change the certifying official to bidding will be announced by public Commission’s two-phased auction its application. Submission of a false notice at least one week before the start application process. In the first phase of certification to the Commission may of the auction. Unless otherwise this process, parties desiring to announced bidding on all licenses will result in penalties, including monetary participate in the auction must file forfeitures, license forfeitures, be conducted on each business day until streamlined, short-form applications in bidding has stopped on all licenses. ineligibility to participate in future which they certify under penalty of auctions, and/or criminal prosecution. ii. Bidding Methodology perjury as to their qualifications. Eligibility to participate in bidding is B. License Selection 47. The bidding methodology for based on the applicants’ short-form Auction 87 will be simultaneous applications and certifications as well as 55. An applicant must select the multiple round (SMR) bidding. The their upfront payments. In the second licenses on which it wants to bid from Commission will conduct this auction phase of the process, winning bidders the Eligible Licenses list on its short- over the Internet using the FCC Auction must file a more comprehensive long- form application. To assist applicants in System, and telephonic bidding will be form application (FCC Form 601) and identifying licenses of interest that will available as well. Qualified bidders are have a complete and accurate be available in Auction 87, the FCC permitted to bid electronically via the ownership disclosure information report Auction System includes a filtering Internet or by telephone. All telephone (FCC Form 602) on file with the mechanism that allows an applicant to calls are recorded. Commission. filter the Eligible Licenses list. iii. Pre-Auction Dates and Deadlines 51. Entities seeking licenses available 56. Applicants will not be able to 48. The following dates and deadlines in Auction 87 must file short-form change their license selections after the apply: applications electronically via the FCC short-form application filing deadline. Auction System prior to 6 p.m. ET on Applicants interested in participating in Auction Tutorial Available (via March 4, March 16, 2010, following the this auction must have selected Internet). 2010. procedures prescribed in Attachment C license(s) available in Auction 87 by the Short-Form Application (FCC March 4, of the Auction 87 Procedures Public short-form application deadline. Form 175) Filing Window 2010; 12 Notice. Applicants filing short-form Applicants must confirm their license Opens. noon ET. applications are subject to the selections before the deadline for Short-Form Application (FCC March 16, Form 175) Filing Window 2010; prior Commission’s rule prohibiting certain submitting short-form applications. The Deadline. to 6 p.m. communications beginning on the FCC Auction System will not accept ET. deadline for filing. The information bids from an applicant on licenses that Upfront Payments (via wire April 23, 2010; provided in its short-form application the applicant has not selected on its transfer). 6 p.m. ET. will be used in determining, among short-form application.

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C. Disclosure of Bidding Arrangements previous auction using ISAS) will ii. Attributable Interests 57. Applicants will be required to automatically be entered into the a. Controlling Interests identify in their short-form applications applicant’s short-form application. An applicant is responsible for ensuring 66. Controlling interests of an all parties with whom they have entered applicant include individuals and into any agreements, arrangements, or that the information submitted in its short-form application for Auction 87 is entities with either de facto or de jure understandings of any kind relating to control of the applicant. Typically, the licenses being auctioned, including complete and accurate. Accordingly, applicants should carefully review any ownership of greater than 50 percent of any agreements relating to post-auction an entity’s voting stock evidences de market structure. information automatically entered to confirm that it is complete and accurate jure control. De facto control is 58. Applicants will also be required to determined on a case-by-case basis. certify under penalty of perjury in their as of the Auction 87 deadline for filing the short-form application. If any 67. Applicants should refer to 47 CFR short-form applications that they have 1.2110(c)(2) and Attachment C of the not entered and will not enter into any information that was entered automatically needs to be changed, Auction 87 Procedures Public Notice to explicit or implicit agreements, understand how certain interests are arrangements, or understandings of any applicants must do so directly in the short-form application. calculated in determining control. For kind with any parties, other than those example, pursuant to 47 CFR identified in the application, regarding E. Designated Entity Provisions 1.2110(c)(2)(ii)(F), officers and directors the amount of their bids, bidding of an applicant are considered to have strategies, or the particular licenses on 62. Eligible applicants in Auction 87 controlling interest in the applicant. which they will or will not bid. If an may claim small business bidding applicant has had discussions, but has credits. Applicants should review b. Affiliates not reached an agreement by the short- carefully the Commission’s decisions 68. Affiliates of an applicant or form application filing deadline, it regarding the designated entity controlling interest include an should not include the names of parties provisions. individual or entity that: (1) Directly or to the discussions on its application and i. Bidding Credits for Small Businesses indirectly controls or has the power to it may not continue such discussions control the applicant; (2) is directly or with any applicants after the deadline. 63. A bidding credit represents an indirectly controlled by the applicant; 59. While 47 CFR 1.2105(c) of the amount by which a bidder’s winning (3) is directly or indirectly controlled by rules does not prohibit non-auction- bid will be discounted. For Auction 87, a third party that also controls or has the related business negotiations among bidding credits will be available to power to control the applicant; or (4) auction applicants, applicants are small businesses and consortia thereof. has an identity of interest with the reminded that certain discussions or applicant. The Commission’s definition exchanges could touch upon a. Bidding Credit Eligibility Criteria of an affiliate of the applicant impermissible subject matters because 64. The level of bidding credit is encompasses both controlling interests they may convey pricing information of the applicant and affiliates of and bidding strategies. Further, as determined as follows: (1) A bidder with attributed average annual gross revenues controlling interests of the applicant. discussed above, compliance with the For more information regarding disclosure requirements of 47 CFR that do not exceed $15 million for the preceding three years will receive a 25 affiliates, applicants should refer to 47 1.2105(c) will not insulate a party from CFR 1.2110(c)(5) and Attachment C of enforcement of the antitrust laws. percent discount on its winning bid; and (2) a bidder with attributed average the Auction 87 Procedures Public D. Ownership Disclosure Requirements annual gross revenues that do not Notice. 60. All applicants must comply with exceed $3 million for the preceding c. Material Relationships the uniform ownership disclosure three years will receive a 35 percent 69. The Commission requires the standards set forth in Title 47, Part 1 of discount on its winning bid. Bidding consideration of certain leasing and the Code of Federal Regulations, and credits are not cumulative. A qualifying resale (including wholesale) provide information required by 47 CFR applicant may claim either a 25 percent relationships—referred to as material 1.2105 and 1.2112. Specifically, in or 35 percent bidding credit on its relationships—in determining completing the short-form application, winning bid. designated entity eligibility for bidding applicants will be required to fully b. Revenue Disclosure on Short-Form credits. Material relationships fall into disclose information on the real party or Application two categories: Impermissible and parties-in-interest and ownership attributable. structure of the applicant. The 65. An entity applying as a small 70. An applicant or licensee has an ownership disclosure standards for the business must provide gross revenues impermissible material relationship short-form application are prescribed in for the preceding three years of each of when it has agreements with one or 47 CFR 1.2105 and 1.2112. Each the following: (1) The applicant, (2) its more other entities for the lease or resale applicant is responsible for information affiliates, (3) its controlling interests, (4) (including under a wholesale submitted in its short-form application the affiliates of its controlling interests, agreement) of, on a cumulative basis, being complete and accurate. and (5) the entities with which it has an more than 50 percent of the spectrum 61. An applicant’s most current attributable material relationship. capacity of any of its licenses. If an ownership information on file with the Certification that the average annual applicant or a licensee has an Commission, if in an electronic format gross revenues of such entities and impermissible material relationship, it compatible with the short-form individuals for the preceding three years is, as a result, (i) ineligible for the award application (FCC Form 175) (such as do not exceed the applicable limit is not of designated entity benefits, and (ii) information submitted with an sufficient. Additionally, if an applicant subject to liability for unjust enrichment ownership disclosure information report is applying as a consortium of small on a license-by-license basis. (FCC Form 602) or in a short-form businesses, this information must be 71. An applicant or licensee has an application (FCC Form 175) filed for a provided for each consortium member. attributable material relationship when

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it has one or more agreements with any the applicant must supply any defaulted on any Commission license or individual entity for the lease or resale additional information as may be been delinquent on any non-tax debt (including under a wholesale required to demonstrate eligibility for owed to any Federal agency, but have agreement) of, on a cumulative basis, the exemption from the attribution rule. since remedied all such defaults and more than 25 percent of the spectrum Applicants seeking to claim this cured all of the outstanding non-tax capacity of any individual license held exemption must meet all of the delinquencies. by the applicant or licensee. The conditions. 78. On the short-form application, an attributable material relationship will applicant must certify under penalty of e. Bidding Consortia cause the gross revenues of that entity perjury that it, its affiliates, its and its attributable interest holders to be 75. A consortium of small businesses controlling interests, and the affiliates of attributed to the applicant or licensee is a conglomerate organization its controlling interests, as defined by 47 for the purposes of determining the composed of two or more entities, each CFR 1.2110, are not in default on any applicant’s or licensee’s (i) eligibility for of which individually satisfies the payments for Commission licenses designated entity benefits and (ii) definition of a small business. Thus, (including down payments) and that liability for unjust enrichment on a each member of a consortium of small they are not delinquent on any non-tax license-by-license basis. businesses that applies to participate in debt owed to any Federal agency. Each 72. The Commission grandfathered Auction 87 must individually meet the applicant must also state under penalty material relationships in existence criteria for small businesses. Each of perjury whether or not it, its affiliates, before the release of the Designated consortium member must disclose its its controlling interests, and the Entity Second Report and Order, 71 FR gross revenues along with those of its affiliates of its controlling interests, 26245, May 5, 2006, meaning that those affiliates, its controlling interests, the have ever been in default on any preexisting relationships alone would affiliates of its controlling interests, and Commission licenses or have ever been not cause the Commission to examine a any entities having an attributable delinquent on any non-tax debt owed to designated entity’s ongoing eligibility material relationship with the member. any Federal agency. Prospective for benefits or its liability for unjust Although the gross revenues of the applicants are reminded that enrichment. The Commission did not, consortium members will not be submission of a false certification to the however, grandfather preexisting aggregated for purposes of determining Commission is a serious matter that may material relationships for the consortium’s eligibility as a small result in severe penalties, including determinations of an applicant’s or business, this information must be monetary forfeitures, license licensee’s designated entity eligibility provided to ensure that each individual revocations, exclusion from for future auctions or in the context of consortium member qualifies for any participation in future auctions, and/or future assignments, transfers of control, bidding credit awarded to the criminal prosecution. These statements spectrum leases, or other reportable consortium. and certifications are prerequisites to eligibility events. Rather, the occurrence submitting an application to participate F. Tribal Lands Bidding Credit of any of those eligibility events after in an FCC auction. the release date of the Designated Entity 76. To encourage the growth of 79. Applicants are encouraged to Second Report and Order triggers a wireless services in federally recognized review the Bureau’s previous guidance reexamination of the applicant’s or tribal lands, the Commission has on default and delinquency disclosure licensee’s designated entity eligibility, implemented a tribal lands bidding requirements in the context of the short- taking into account all existing material credit. Applicants do not provide form application process. For example, relationships, including those information regarding tribal lands it has been determined that to the extent previously grandfathered. bidding credits on their short-form that Commission rules permit late applications. Instead, winning bidders payment of regulatory or application d. Gross Revenue Exceptions may apply for the tribal lands bidding fees accompanied by late fees, such 73. The Commission has also made credit after the auction when they file debts will become delinquent for other modifications to its rules their more detailed, long-form purposes of 47 CFR 1.2105(a) and governing the attribution of gross applications. 1.2106(a) only after the expiration of a revenues for purposes of determining final payment deadline. Therefore, with G. Provisions Regarding Former and designated entity eligibility. For respect to regulatory or application fees, Current Defaulters example, the Commission has clarified the provisions of 47 CFR 1.2105(a) and that, in calculating an applicant’s gross 77. Current defaulters are not eligible 1.2106(a) regarding default and revenues under the controlling interest to participate in Auction 87, but former delinquency in connection with standard, it will not attribute the defaulters can participate so long as competitive bidding are limited to personal net worth, including personal they are otherwise qualified and, make circumstances in which the relevant income, of its officers and directors to upfront payments that are fifty percent party has not complied with a final the applicant. more than the normal upfront payment Commission payment deadline. Parties 74. The Commission has also amounts. An applicant is considered a are also encouraged to coordinate with exempted from attribution to the current defaulter when it, its affiliates, the Commission’s Office of Managing applicant the gross revenues of the its controlling interests, or the affiliates Director or the Bureau’s Auctions and affiliates of a rural telephone of its controlling interests, are in default Spectrum Access Division staff if they cooperative’s officers and directors, if on any payment for any Commission have any questions about default and certain conditions specified in 47 CFR license (including down payments) or delinquency disclosure requirements. 1.2110(b)(3)(iii) are met. An applicant are delinquent on any non-tax debt 80. The Commission considers claiming this exemption must provide, owed to any Federal agency as of the outstanding debts owed to the United in an attachment, an affirmative filing deadline for short-form States Government, in any amount, to be statement that the applicant, affiliate applications. An applicant is considered a serious matter. The Commission has and/or controlling interest is an eligible a former defaulter when it, its affiliates, adopted rules, including a provision rural telephone cooperative within the its controlling interests, or the affiliates referred to as the red light rule, that meaning of 47 CFR 1.2110(b)(3)(iii), and of its controlling interests, have implement the Commission’s

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obligations under the Debt Collection in its pending application and to notify procedures set forth in Attachment C of Improvement Act of 1996, which the Commission of any substantial the Auction 87 Procedures Public Notice governs the collection of claims owed to change that may be of decisional to submit a short-form application (FCC the United States. Under the red light significance to that application. The Form 175) electronically via the FCC rule, the Commission will not process Commission recently amended 47 CFR Auction System. This application must applications and other requests for 1.65(a) to require applicants in be received at the Commission prior to benefits filed by parties that have competitive bidding proceedings to 6 p.m. ET on March 16, 2010. Late outstanding debts owed to the furnish additional or corrected applications will not be accepted. Commission. In the same rulemaking information within five days of a C. Application Processing and Minor order, the Commission explicitly significant occurrence, or to amend their Corrections declared, however, that the short-form applications no more than Commission’s competitive bidding rules five days after the applicant becomes 90. After the deadline for filing short- are not affected by the red light rule. As aware of the need for amendment. form applications, the Commission will a consequence, the Commission’s Changes that cause a loss of or reduction process all timely submitted adoption of the red light rule does not in eligibility for a bidding credit should applications to determine which are alter the applicability of any of the be reported immediately. If an complete, and subsequently will issue a Commission’s competitive bidding amendment reporting substantial public notice identifying (1) those rules, including the provisions and changes is a major amendment, as applications that are complete, (2) those certifications of 47 CFR 1.2105 and defined by 47 CFR 1.2105, the major applications that are rejected, and (3) 1.2106, with regard to current and amendment will not be accepted and those applications that are incomplete former defaults or delinquencies. may result in the dismissal of the short- because of minor defects that may be 81. Applicants are reminded, form application. corrected. The public notice will however, that the Commission’s Red 85. After the short-form filing include the deadline for resubmitting Light Display System, which provides deadline, applicants may make only corrected applications. information regarding debts owed to the minor changes to their short-form 91. After the March 16, 2010, short- Commission, may not be determinative applications. form filing deadline, applicants may of an auction applicant’s ability to make only minor corrections to their comply with the default and III. Pre-Auction Procedures applications. Applicants will not be delinquency disclosure requirements of A. Online Auction Tutorial—Available permitted to make major modifications 47 CFR 1.2105. Thus, while the red light March 4, 2010 to their applications (e.g., change their rule ultimately may prevent the license selections, change control of the processing of long-form applications by 86. On Thursday, March 4, 2010, the applicant, change certifying official, or auction winners, an auction applicant’s Commission will post an educational change their size to claim eligibility for red light status is not necessarily auction tutorial on the Auction 87 web a higher bidding credit). determinative of its eligibility to page for prospective bidders to 92. Applicants should be aware the participate in an auction or of its familiarize themselves with the auction Commission staff will communicate upfront payment obligation. process. This online tutorial will only with an applicant’s contact person provide information about pre-auction or certifying official, as designated on H. Minor Modifications to Short-Form procedures, completing short-form the applicant’s short-form application, Applications applications, auction conduct, the FCC unless the applicant’s certifying official 82. Applicants are not permitted to Auction Bidding System, auction rules, or contact person notifies the make major modifications to their short- and paging rules. The tutorial will also Commission in writing that applicant’s form applications (e.g., change their provide an avenue to ask questions of counsel or other representative is license selections, change control of the FCC staff concerning the auction, authorized to speak on its behalf. applicant, change the certifying official, auction procedures, filing requirements, Authorizations may be submitted by e- or change their size to claim eligibility and other matters related to this auction. mail at the following address: for a higher bidding credit) after the 87. The Auction 87 online tutorial [email protected]. short-form application deadline. Thus, replaces the live bidder seminars that any change in control of an applicant, have been offered for most previous D. Upfront Payments—Due April 23, resulting from a merger, for example, auctions. The Bureau believes parties 2010 will be considered a major modification interested in participating in Auction 87 93. In order to be eligible to bid in this to the applicant’s short-form will find this interactive, online tutorial auction, applicants must submit an application, which will consequently be a more efficient and effective way to upfront payment accompanied by an dismissed. further their understanding of the FCC Remittance Advice Form (FCC 83. Applicants are, however, auction process. Form 159). After completing its short- permitted to make minor changes to 88. The auction tutorial will be form application, an applicant will have their short-form applications after the accessible from the FCC’s Auction 87 access to an electronic version of the filing deadline. Permissible minor web page at http://wireless.fcc.gov/ FCC Form 159 that can be printed and changes include, for example, deletion auctions/87/ through an Auction sent by fax to U.S. Bank in St. Louis, and addition of authorized bidders (to a Tutorial link. Once posted, this tutorial Missouri. All upfront payments must be maximum of three) and revision of will remain available for reference in made as instructed in this Public Notice addresses and telephone numbers of the connection with the procedures and must be received in the proper applicants and their contact persons. outlined in the Auction 87 Procedures account at U.S. Bank before 6 p.m. ET Public Notice and accessible anytime. on April 23, 2010. I. Maintaining Current Information in Short-Form Applications B. Short-Form Applications—Due Prior i. Making Upfront Payments by Wire 84. 47 CFR 1.65 requires an applicant to 6 p.m. ET on March 16, 2010 Transfer to maintain the accuracy and 89. In order to be eligible to bid in this 94. Wire transfer payments must be completeness of information furnished auction, applicants must first follow the received by 6 p.m. ET on April 23, 2010.

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No other payment method is acceptable. payments help deter frivolous or discussion of the proposed minimum To avoid untimely payments, applicants insincere bidding, and provide the opening bid amounts, the Bureau noted should discuss arrangements (including Commission with a source of funds in it had not attempted to adjust minimum bank closing schedules) with their the event that the bidder incurs liability opening bid amounts for licenses based banker several days before they plan to during the auction. on precise levels of incumbency within make the wire transfer, and allow 99. Applicants that are former particular geographic areas, and has sufficient time for the transfer to be defaulters must pay upfront payments instead proposed a formula intended to initiated and completed before the 50 percent greater than non-former reflect overall incumbency levels within deadline. defaulters. For purposes of this the paging service areas being offered. 95. At least one hour before placing calculation, the applicant includes the 103. In calculating its upfront the order for the wire transfer (but on applicant itself, its affiliates, its payment amount, an applicant should the same business day), applicants must controlling interests, and affiliates of its determine the maximum number of fax a completed FCC Form 159 (Revised controlling interests, as defined by 47 bidding units on which it may wish to 2/03) to U.S. Bank at (314) 418–4232. CFR 1.2110. be active (bid on or hold provisionally On the fax cover sheet, applicants 100. Applicants must make upfront winning bids on) in any single round, should write Wire Transfer—Auction payments sufficient to obtain bidding and submit an upfront payment amount Payment for Auction 87. In order to eligibility on the licenses on which they covering that number of bidding units. meet the Commission’s upfront payment will bid. The Bureau proposed, in the In order to make this calculation, an deadline, an applicant’s payment must Auction 87 Comment Public Notice, that applicant should add together the be credited to the Commission’s account the amount of the upfront payment upfront payments for all licenses on before the deadline. The applicant is would determine a bidder’s initial which it seeks to be active in any given responsible for obtaining confirmation bidding eligibility, the maximum round. Applicants should check their from its financial institution that U.S. number of bidding units on which a calculation carefully, as there is no Bank has timely received its upfront bidder may place bids. Under the provision for increasing a bidder’s payment and deposited it in the proper Bureau’s proposal, in order to bid on a eligibility after the upfront payment account. particular license, a qualified bidder deadline. 96. Please note the following must have selected the license on its 104. Applicants that are former information regarding upfront short-form application and must have a defaulters must calculate their upfront payments: (1) All payments must be current eligibility level that meets or payment for all licenses by multiplying made in U.S. dollars; (2) all payments exceeds the number of bidding units the number of bidding units on which must be made by wire transfer; (3) assigned to that license. At a minimum, they wish to be active by 1.5. In order upfront payments for Auction 87 go to therefore, an applicant’s total upfront to calculate the number of bidding units a lockbox number different from the payment must be enough to establish at to assign to former defaulters, the lockboxes used in previous FCC least 500 bidding units of eligibility, or Commission will divide the upfront auctions; and (4) failure to deliver a else the applicant will not be eligible to payment received by 1.5 and round the sufficient upfront payment as instructed participate in the auction. An applicant result up to the nearest bidding unit. by the April 23, 2010, deadline will does not have to make an upfront result in dismissal of the short-form payment to cover all licenses the iv. Applicant’s Wire Transfer application and disqualification from applicant selected on its short-form Information for Purposes of Refunds of participation in the auction. application, but only enough to cover Upfront Payments the maximum number of bidding units 105. To ensure that refunds of upfront ii. FCC Form 159 that are associated with licenses on payments are processed in an 97. A completed FCC Remittance which the bidder wishes to place bids expeditious manner, the Commission is Advice Form (FCC Form 159, Revised and hold provisionally winning bids at requesting that all pertinent information 2/03) must be faxed to U.S. Bank to any given time. listed below be supplied. Applicants accompany each upfront payment. 101. In the Auction 87 Comment can provide the information Proper completion of FCC Form 159 is Public Notice, the Bureau proposed to electronically during the initial short- critical to ensuring correct crediting of make the upfront payments equal to the form application filing window after the upfront payments. Detailed instructions minimum opening bids. The Bureau form has been submitted. for completion of FCC Form 159 are further proposed that each license be included in Attachment D of the assigned a specific number of bidding E. Auction Registration Auction 87 Procedures Public Notice. units equal to the upfront payment 106. Approximately ten days before An electronic pre-filled version of the listed for the license, on a bidding unit the auction, the Bureau will issue a FCC Form 159 is available after for dollar basis. The bidding unit level public notice announcing all qualified submitting the short-form application. for each license will remain constant bidders for the auction. Qualified Payors using the pre-filled FCC Form throughout the auction. The Bureau bidders are those applicants with 159 are responsible for ensuring that all received no comments on this issue. submitted short-form applications that of the information on the form, The Bureau adopts its proposed upfront are deemed complete and upfront including payment amounts, is accurate. payments. The upfront payment and payments that are sufficient to make The FCC Form 159 can be completed bidding units for each license will be them eligible to bid. electronically, but must be filed with $500 and 500 bidding units. 107. All qualified bidders are U.S. Bank by fax. 102. In the Auction 87 Comment automatically registered for the auction. Public Notice, the Bureau noted the Registration materials will be iii. Upfront Payments and Bidding presence of pre-existing site-based distributed prior to the auction by Eligibility incumbent licenses within some of the overnight mail. The mailing will be sent 98. The Commission has delegated to geographic areas available in Auction only to the contact person at the contact the Bureau the authority and discretion 87. The Bureau did not specifically address listed in the short-form to determine appropriate upfront address incumbency in its discussion of application and will include the payments for each auction. Upfront upfront payments. However, in its SecurID® tokens that will be required to

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place bids, the Integrated Spectrum be released approximately 10 days percentage—the percentages of licenses Auction System (ISAS) Bidder’s Guide, before the start of the auction. (as measured in bidding units) on which and the Auction Bidder Line phone there were new bids—for the round. In A. Auction Structure number. addition, bidders can log in to the FCC 108. Qualified bidders that do not i. Simultaneous Multiple Round Auction System to see, after each round, receive this registration mailing will not Auction whether their own bids are be able to submit bids. Therefore, any 113. The Bureau will auction all provisionally winning. The Bureau will qualified bidder that has not received licenses in Auction 87 in a single provide descriptions and/or samples of this mailing by noon on Wednesday, auction using the Commission’s publicly available and bidder-specific (non-public) results files prior to the May 19, 2010, should call (717) 338– standard simultaneous multiple-round start of the auction. 2868. Receipt of this registration mailing auction format. This type of auction is critical to participating in the auction, 116. The Bureau, however, retains the offers every license for bid at the same discretion not to use limited and each applicant is responsible for time and consists of successive bidding ensuring it has received all of the information procedures if the Bureau, rounds in which eligible bidders may after examining the level of potential registration material. place bids on individual licenses. A 109. Only a person who has been competition as expressed in the license bidder may bid on, and potentially win, selection on the short-form applications designated as an authorized bidder, the any number of licenses. Typically, contact person, or the certifying official filed for Auction 87, determines that the bidding remains open on all licenses circumstances indicate that limited on the applicant’s short-form until bidding stops on every license. information procedures would not be an application may request replacements effective tool for deterring anti- for lost or damaged SecurID® tokens. ii. Information Available to Bidders Before and During the Auction competitive behavior. For example, if F. Remote Electronic Bidding only two applicants become qualified to 114. In the Auction 87 Comment participate in the bidding, limited 110. The Commission will conduct Public Notice, the Bureau proposed to information procedures would be this auction over the Internet, and withhold, until after the close of ineffective in preventing bidders from telephonic bidding will be available as bidding, public release of (1) bidders’ knowing the identity of the competing well. Only qualified bidders are license selections on their short-form bidder and, therefore, limited permitted to bid. Each applicant should applications (FCC Form 175), (2) the information procedures would not serve indicate its bidding preference— amounts of bidders’ upfront payments to deter attempts at signaling and electronic or telephonic—on its short- and bidding eligibility, and (3) retaliatory bidding behavior. form application. In either case, each information that may reveal the 117. Other Issues. Information authorized bidder must have its own identities of bidders placing bids and ® disclosure procedures established for SecurID token, which the Commission taking other bidding-related actions. this auction will not interfere with the will provide at no charge. Each The Bureau sought comment on the administration of or compliance with applicant with one authorized bidder proposal to implement anonymous ® the Commission’s prohibition of certain will be issued two SecurID tokens, bidding and on any alternatives, communications. 47 CFR 1.2105(c)(1) while applicants with two or three particularly in light of the large number provides that, after the short-form authorized bidders will be issued three of licenses available in Auction 87. application filing deadline, all tokens. For security purposes, the 115. The Bureau received one ® applicants for licenses in any of the SecurID tokens, the telephonic bidding comment on its proposal to use same or overlapping geographic license telephone number, and the Integrated anonymous bidding procedures for areas are prohibited from disclosing to Spectrum Auction System (ISAS) Auction 87. Because the Bureau finds each other in any manner the substance Bidder’s Guide are only mailed to the that the competitive benefits associated of bids or bidding strategies until after contact person at the contact address with anonymous bidding support the down payment deadline, subject to listed on the short-form application. adoption of such procedures, the Bureau specified exceptions. Each SecurID® token is tailored to a adopts the limited information 118. In Auction 87, the Commission specific auction. SecurID® tokens issued procedures proposed in the Auction 87 will not disclose information regarding for other auctions or obtained from a Comment Public Notice. Thus, after the license selection or the amounts of source other than the FCC will not work conclusion of each round, the Bureau bidders’ upfront payments and bidding for Auction 87. will disclose all relevant information eligibility. As in the past, the about the bids placed and/or withdrawn G. Mock Auction—May 21, 2010 Commission will disclose the other except the identities of the bidders portions of applicants’ short-form 111. All qualified bidders will be performing the actions and the net applications through its online database, eligible to participate in a mock auction amounts of the bids placed or and certain application-based on Friday, May 21, 2010. The mock withdrawn. As in past auctions information through public notices. auction will enable applicants to conducted with limited information 119. To assist applicants in become familiar with the FCC Auction procedures, the Bureau will indicate, for identifying other parties subject to 47 System prior to the auction. each license, the minimum acceptable CFR 1.2105(c), the Bureau will notify Participation by all bidders is strongly bid amount for the next round and separately each applicant in Auction 87 recommended. Details will be whether the license has a provisionally whether applicants with short-form announced by public notice. winning bid. After each round, the applications to participate in pending Bureau will also release, for each auctions, including but not limited to IV. Auction Event license, the number of bidders that Auction 87, have applied for licenses in 112. The first round of bidding for placed a bid on the license. any of the same or overlapping Auction 87 will begin on Tuesday, May Furthermore, the Bureau will indicate geographic areas as that applicant. 25, 2010. The initial bidding schedule whether any proactive waivers were Specifically, after the Bureau conducts will be announced in a public notice submitted in each round, and the its initial review of applications to listing the qualified bidders, which is to Bureau will release the stage transition participate in Auction 87, it will send to

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each applicant in Auction 87 a letter Spectrum Access Division before bidder’s current eligibility, and that lists the other applicants that have making such disclosure. increases by stage as the auction pending short-form applications for progresses. Because these procedures iii. Eligibility and Activity Rules licenses in any of the same or have proven successful in maintaining overlapping geographic areas. The list 123. The Bureau will use upfront the pace of previous auctions, the will identify the other applicants by payments to determine initial Commission adopts them for Auction name but will not list their license (maximum) eligibility (as measured in 87. Failure to maintain the requisite selections. As in past auctions, bidding units) for Auction 87. The activity level will result in the use of an additional information regarding other amount of the upfront payment activity rule waiver, if any remain, or a applicants that is needed to comply submitted by a bidder determines initial reduction in the bidder’s eligibility, with 47 CFR 1.2105(c)—such as the bidding eligibility, the maximum possibly curtailing or eliminating the identities of other applicants’ number of bidding units on which a bidder’s ability to place additional bids controlling interests and entities with a bidder may be active. As noted earlier, in the auction. each license is assigned a specific greater than ten percent ownership iv. Auction Stages interest—will be available through the number of bidding units set forth in the publicly accessible online short-form complete list of licenses available for 127. In the Auction 87 Comment application database. Auction 87, available as separate Public Notice, the Bureau proposed to 120. When completing short-form Attachment A files at http:// conduct the auction in two stages and applications, applicants should avoid wireless.fcc.gov/auctions/87/. Bidding employ an activity rule. Under the any statements or disclosures that may units for a given license do not change Bureau’s proposal a bidder desiring to violate the Commission’s prohibition of as prices rise during the auction. A maintain its current bidding eligibility bidder’s upfront payment is not would be required to be active on certain communications, pursuant to 47 attributed to specific licenses. Rather, a licenses representing at least 80 percent CFR 1.2105(c), particularly in light of bidder may place bids on any of the of its current bidding eligibility, during the Commission’s procedures regarding licenses selected on its short-form each round of Stage One, and at least 95 the availability of certain information in application as long as the total number percent of its current bidding eligibility Auction 87. While applicants’ license of bidding units associated with those in Stage Two. The Commission received selections will not be disclosed until licenses does not exceed its current no comments on this proposal. after Auction 87 closes, the Commission eligibility. Eligibility cannot be 128. The Bureau has the discretion to will disclose other portions of short- increased during the auction; it can only further alter the activity requirements form applications through its online remain the same or decrease. Thus, in before and/or during the auction as database and public notices. calculating its upfront payment amount, circumstances warrant, and also has Accordingly, applicants should avoid an applicant must determine the other mechanisms by which it may including any information in their maximum number of bidding units it influence the speed of an auction. The short-form applications that might may wish to bid on or hold Bureau finds that two stages for an convey information regarding license provisionally winning bids on in any activity requirement adequately selections. For example, applicants single round, and submit an upfront balances the desire to conclude the should avoid using applicant names that payment amount covering that total auction quickly with giving sufficient refer to licenses being offered, referring number of bidding units. At a time for bidders to consider the status to certain licenses or markets in minimum, an applicant’s upfront of the bidding and to place bids. describing bidding agreements, or payment must cover the bidding units Therefore, the Bureau adopts the two including any information in for at least one of the licenses it selected stages for Auction 87. attachments that may otherwise disclose on its short-form application. The total v. Stage Transitions applicants’ license selections. upfront payment does not affect the 121. If an applicant is found to have total dollar amount a bidder may bid on 129. In the Auction 87 Comment violated the Commission’s rules or any given license. Public Notice, the Bureau proposed that antitrust laws in connection with its 124. In order to ensure that an auction it would advance the auction to the next participation in the competitive bidding closes within a reasonable period of stage (i.e., from Stage One to Stage Two) process, the applicant may be subject to time, an activity rule requires bidders to after considering a variety of measures various sanctions, including forfeiture bid actively throughout the auction, of auction activity. The Bureau received of its upfront payment, down payment, rather than wait until late in the auction no comments on this issue therefore the or full bid amount and prohibition from before participating. Bidders are Bureau adopts its proposal for stage participating in future auctions. required to be active on a specific transitions. Thus, the auction will start 122. The Bureau hereby warns minimum percentage of their current in Stage One. The Bureau will regulate applicants that the direct or indirect bidding eligibility during each round of the pace of the auction by communication to other applicants or the auction. announcement. The Bureau retains the the public disclosure of non-public 125. A bidder’s activity level in a discretion to transition the auction to information (e.g., bid withdrawals, round is the sum of the bidding units Stage Two, to add an additional stage proactive waivers submitted, reductions associated with any licenses covered by with a higher activity requirement, not in eligibility) could violate the new and provisionally winning bids. A to transition to Stage Two, and to Commission’s anonymous bidding bidder is considered active on a license transition to Stage Two with an activity procedures and 47 CFR 1.2105(c). To in the current round if it is either the requirement that is higher or lower than the extent an applicant believes that provisionally winning bidder at the end 95 percent. This determination will be such a disclosure is required by law or of the previous bidding round and does based on a variety of measures of regulation, including regulations issued not withdraw the provisionally winning auction activity, including, but not by the Securities and Exchange bid in the current round, or if it submits limited to, the number of new bids and Commission, the Bureau strongly urges a bid in the current round. the percentages of licenses (as measured that the applicant consult with the 126. The minimum required activity in bidding units) on which there are Commission staff in the Auctions and is expressed as a percentage of the new bids.

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vi. Activity Rule Waivers foster an auction pace that reasonably level. In reply, another commenter 130. In the Auction 87 Comment balances speed with the bidders’ need to disagreed and suggested that the success Public Notice, the Bureau proposed that study round results and adjust their of Auctions 40 and 48 confirm that the each bidder in the auction be provided bidding strategies. The Bureau may minimum opening bid levels proposed with three activity rule waivers. The increase or decrease the amount of time will have the desired result of Bureau received no comments on this for the bidding rounds, the amount of producing a time-efficient auction that issue and therefore adopts its proposal time between rounds, or the number of places spectrum in the hands of those to provide bidders with three activity rounds per day, depending upon that value it most. rule waivers. More detail on activity bidding activity and other factors. 139. The Bureau finds that the rule waivers can be found in the ii. Reserve Price and Minimum Opening proposed minimum opening bids will Auction 87 Procedures Public Notice. Bids promote an appropriate auction pace and avoid unnecessarily prolonging vii. Auction Stopping Rules 136. Section 309(j) of the Auction 87. The Bureau therefore Communications Act of 1934, as 131. For Auction 87, the Bureau adopts its proposal to set the minimum amended, calls upon the Commission to proposed to employ a simultaneous opening bid for each license available in prescribe methods by which a stopping rule approach. A simultaneous Auction 87 at $500. reasonable reserve price will be required stopping rule means that all licenses or a minimum opening bid established iii. Bid Amounts remain available for bidding until when applications for FCC licenses are bidding closes simultaneously on all 140. In the Auction 87 Comment subject to auction (i.e., because they are licenses. More specifically, bidding will Public Notice, the Bureau proposed that mutually exclusive), unless the close simultaneously on all licenses in each round, eligible bidders be able Commission determines that a reserve after the first round in which no bidder to place a bid on a given license using price or minimum opening bid is not in one or more pre-defined bid amounts. submits any new bids, applies a the public interest. Under the proposal, the FCC Auction proactive waiver, or withdraws any 137. In the Auction 87 Comment System interface will list the acceptable provisionally winning bids. Public Notice, the Bureau did not 132. The Bureau also sought comment propose to establish a separate reserve bid amounts for each license. The on alternative versions of the price for the licenses to be offered in Commission received no comment on simultaneous stopping rule for Auction Auction 87. The Bureau, however, did this issue. Based on the Commission’s 87. The Bureau received no comment on propose to establish minimum opening experience in prior auctions, the Bureau its proposals, and therefore adopts the bids for each license, reasoning that a adopts this proposal for Auction 87. simultaneous stopping rule and its minimum opening bid, which has been a. Minimum Acceptable Bids alternatives versions as options. used on other auctions, is an effective bidding tool for accelerating the 141. Under the Bureau’s proposed viii. Auction Delay, Suspension, or procedures, the first of the acceptable Cancellation competitive bidding process. Specifically, for Auction 87, the Bureau bid amounts is called the minimum 133. In the Auction 87 Comment proposed to set the minimum opening acceptable bid amount. The minimum Public Notice, the Bureau proposed that, bid for each license available in Auction acceptable bid amount for a license will by public notice or by announcement 87 at $500. In the Auction 87 Comment be equal to its minimum opening bid during the auction, it may delay, Public Notice, the Bureau noted the amount until there is a provisionally suspend, or cancel the auction in the presence of pre-existing site-based winning bid on the license. After there event of natural disaster, technical incumbent licenses within some of the is a provisionally winning bid for a obstacle, administrative or weather geographic areas available in Auction license, the minimum acceptable bid necessity, evidence of an auction 87. In its discussion of the proposed will be a certain percentage higher. That security breach or unlawful bidding minimum opening bid amounts, the is, the minimum acceptable bid amount activity, or for any other reason that Bureau noted that it had not attempted will be calculated by multiplying the affects the fair and efficient conduct of to adjust minimum opening bid provisionally winning bid amount times competitive bidding. The Bureau amounts for licenses based on precise one plus the minimum acceptable bid received no comment on this issue levels of incumbency within particular percentage. If, for example, the therefore the Bureau adopts the geographic areas, and have instead minimum acceptable bid percentage is proposed rules regarding auction delay, proposed a formula intended to reflect 10 percent, the minimum acceptable bid suspension, or cancellation. overall incumbency levels within the amount will equal (provisionally B. Bidding Procedures paging areas being offered. winning bid amount) * (1.10), rounded. 138. The Bureau sought comment on In the case of a license for which the i. Round Structure its proposal for minimum opening bids provisionally winning bid has been 134. The initial schedule of bidding and, in the alternative, on whether, withdrawn, the minimum acceptable rounds will be announced in the public consistent with Section 309(j), the bid amount will equal the second notice listing the qualified bidders, public interest would be served by highest bid received for the license. which is released approximately 10 having no minimum opening bids. A 142. For Auction 87, the Bureau days before the start of the auction. Each commenter expressed concern about the proposed to use a minimum acceptable bidding round is followed by the release minimum opening bids for licenses in bid percentage of 10 percent. This of round results. Multiple bidding Auction 87 and appeared to be means that the minimum acceptable bid rounds may be conducted in a given concerned about setting minimum amount for a license will be day. Details regarding round results opening bids at the same level that approximately 10 percent greater than formats and locations will also be certain paging licenses were won in the provisionally winning bid amount included in the qualified bidders public previous auctions (i.e., $500) and that for the license. notice. the proposed minimum opening bid 143. The Bureau received no 135. The Bureau has discretion to amounts may make it difficult for comments on this proposal. Therefore, change the bidding schedule in order to bidders to maintain the required activity the Bureau adopts its proposal to begin

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the auction with a minimum acceptable winning bids count toward activity for bidder has enough eligibility), remove bid increment percentage of 0.10. purposes of the activity rule. bids placed in the current bidding 148. In the Auction 87 Comment round, withdraw provisionally winning b. Additional Bid Amounts Public Notice, the Bureau proposed to bids from previous rounds, or 144. Any additional bid amounts are use a random number generator to select permanently reduce eligibility. If a calculated using the minimum a single provisionally winning bid in bidder submits multiple bids for the acceptable bid amount and a bid the event of identical high bid amounts exact same license in the same round, increment percentage, which need not being submitted on a license in a given the system takes the last bid entered as be the same as the percentage used to round (i.e., tied bids). No comments that bidder’s bid for the round. Bidders calculate the minimum acceptable bid were received on this proposal. Hence, should note that the bidding units amount. The first additional acceptable the Bureau adopts the proposal. associated with licenses for which the bid amount equals the minimum v. Bidding bidder has removed or withdrawn its acceptable bid amount times one plus bid do not count towards the bidder’s the bid increment percentage, rounded. 149. All bidding will take place current activity. If, for example, the bid increment remotely either through the FCC 155. Finally, bidders are cautioned to percentage is 5 percent, the calculation Auction System or by telephonic select their bid amounts carefully is (minimum acceptable bid amount) * bidding. There will be no on-site because, as explained below, bidders (1 + 0.05), rounded, or (minimum bidding during Auction 87. Please note that withdraw a provisionally winning acceptable bid amount) * 1.05, rounded; that telephonic bid assistants are bid from a previous round, even if the the second additional acceptable bid required to use a script when entering bid was mistakenly or erroneously amount equals the minimum acceptable bids placed by telephone. Telephonic made, are subject to bid withdrawal bid amount times one plus two times bidders are therefore reminded to allow payments. the bid increment percentage, rounded, sufficient time to bid by placing their or (minimum acceptable bid amount) * calls well in advance of the close of a vi. Bid Removal and Bid Withdrawal 1.10, rounded; etc. The Bureau will round. The length of a call to place a 156. In the Auction 87 Comment round the results using the telephonic bid may vary; please allow a Public Notice, the Commission Commission’s standard rounding minimum of ten minutes. proposed bid removal and bid procedures for auctions. 150. A bidder’s ability to bid on withdrawal procedures. The Bureau 145. The Bureau sought comment on specific licenses is determined by two sought comment on permitting a bidder whether to start with eight additional factors: (1) The licenses selected on the to remove a bid before the close of the bid amounts (for a total of nine bid bidder’s short-form application and (2) round in which the bid was placed. amounts), or with fewer or no additional the bidder’s eligibility. The bid With respect to bid withdrawals, the bid amounts, in the event that submission screens will allow bidders Commission proposed limiting each anonymous bidding is implemented for to submit bids on only those licenses bidder to withdrawals of provisionally Auction 87. If additional bid amounts the bidder selected on its short-form winning bids on licenses in no more are available in Auction 87, the Bureau application. than one round during the course of the proposed to use a bid increment 151. In order to access the bidding auction. The round in which percentage of 5 percent. function of the FCC Auction System, withdrawals are used would be at each 146. The Bureau received no bidders must be logged in during the bidder’s discretion. comments on this proposal. Therefore, bidding round using the passcode 157. The Bureau received no the Bureau adopts its proposal to begin generated by the SecurID® token and a comments on this issue. Therefore, the the auction with a bid increment personal identification number created Bureau adopts its proposal. percentage of 0.05 and have eight by the bidder. Bidders are strongly 158. Bid Removal. Before the close of additional bid amounts per license (for encouraged to print a round summary a bidding round, a bidder has the option a total of nine bid amounts). The Bureau for each round after they have of removing any bids placed in that retains the discretion to change the completed all of their activity for that round. By using the remove bids minimum acceptable bid amounts, the round. function in the FCC Auction System, a additional bid amounts, the number of 152. In each round, eligible bidders bidder may effectively unsubmit any bid acceptable bid amounts, and the will be able to place bids on a given placed within that round. A bidder parameters of the formulas used to license in one or more pre-defined bid removing a bid placed in the same calculate minimum acceptable bid amounts. For each license, the FCC round is not subject to withdrawal amounts and additional bid amounts if Auction System will list the acceptable payments. If a bid is placed on a license it determines that circumstances so bid amounts in a drop-down box. during a round, it will count towards dictate. Further, the Bureau retains the Bidders use the drop-down box to select the activity for that round, but when discretion to do so on a license-by- from among the acceptable bid amounts. that bid is then removed during the license basis. The FCC Auction System also includes same round it was placed, the activity an upload function that allows bidders associated with it is also removed, i.e., iv. Provisionally Winning Bids to upload text files containing bid a bid that is removed does not count 147. At the end of each bidding information. toward bidding activity. round, a provisionally winning bid will 153. Until a bid has been placed on 159. Bid Withdrawal. Once a round be determined based on the highest bid a license, the minimum acceptable bid closes, a bidder may no longer remove amount received for each license. A amount for that license will be equal to a bid. However, in a later round, a provisionally winning bid will remain its minimum opening bid amount. Once bidder may withdraw provisionally the provisionally winning bid until there are bids on a license, minimum winning bids from previous rounds for there is a higher bid on the same license acceptable bids for a license will be licenses using the withdraw bids at the close of a subsequent round. determined. function in the FCC Auction System. A Provisionally winning bids at the end of 154. During a round, an eligible provisionally winning bidder that the auction become the winning bids. bidder may submit bids for as many withdraws its provisionally winning bid Bidders are reminded that provisionally licenses as it wishes (provided that the from a previous round during the

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auction is subject to the bid withdrawal round, the amounts of all bids placed on established in the CSEA/Part 1 Report payments specified in 47 CFR 1.2104(g). the license during the round, and and Order 71 FR 6992, February 10, Once a withdrawal is submitted during whether the license is FCC held. The 2006. Specifically, each member (or a round, that withdrawal cannot be system will also provide an entire group of members) of a winning unsubmitted even if the round has not license history detailing all activity that consortium seeking separate licenses yet ended. has taken place on a license with the will be required to file a separate long- 160. If a provisionally winning bid is ability to sort by round number. The form application for its respective withdrawn, the minimum acceptable reports will be publicly accessible. license(s). If the license is to be bid amount will equal the amount of the Moreover, after the auction, the Bureau partitioned or disaggregated, the second highest bid received for the will make available complete reports of member (or group) filing the long-form license, which may be less than, or in all bids placed during each round of the application must provide the relevant the case of tied bids, equal to, the auction, including bidder identities. partitioning or disaggregation agreement amount of the withdrawn bid. The in its long-form application. In addition, Commission will serve as a placeholder viii. Auction Announcements if two or more consortium members provisionally winning bidder on the 164. The Commission will use auction wish to be licensed together, they must license until a new bid is submitted on announcements to announce items such first form a legal business entity, and that license. as schedule changes and stage any such entity must meet the 161. Calculation of Bid Withdrawal transitions. All auction announcements applicable designated entity criteria. Payment. Generally, the Commission will be available by clicking a link in D. Ownership Disclosure Information imposes payments on bidders that the FCC Auction System. withdraw provisionally winning bids Report (FCC Form 602) during the course of an auction. If a V. Post-Auction Procedures 170. Within ten business days after bidder withdraws its bid and there is no 165. Shortly after bidding has ended, release of the auction closing public higher bid in the same or subsequent the Commission will issue a public notice, each winning bidder must also auction(s), the bidder that withdrew its notice declaring the auction closed, comply with the ownership reporting bid is responsible for the difference identifying the winning bidders, and requirements in 47 CFR 1.913, 1.919, between its withdrawn bid and the establishing the deadlines for and 1.2112 by submitting an ownership winning bid in the same or subsequent submitting down payments, long-form disclosure information report (FCC auction(s). If there are multiple bid applications, final payments, and Form 602) with its long-form withdrawals on a single license and no ownership disclosure information application. subsequent higher bid is placed and/or reports. 171. If an applicant already has a the license is not won in the same complete and accurate FCC Form 602 on auction, the payment for each bid A. Down Payments file in the Commission’s Universal withdrawal will be calculated based on 166. Within ten business days after Licensing System (ULS), it is not the sequence of bid withdrawals and the release of the auction closing public necessary to file a new report, but amounts withdrawn. No withdrawal notice, each winning bidder must applicants must verify that the payment will be assessed for a submit sufficient funds (in addition to information on file with the withdrawn bid if either the subsequent its upfront payment) to bring its total Commission is complete and accurate. If winning bid or any subsequent amount of money on deposit with the the applicant does not have an FCC intervening withdrawn bid, in either the Commission for Auction 87 to 20 Form 602 on file, or if it is not complete same or subsequent auction(s), equals or percent of the net amount of its winning and accurate, the applicant must submit exceeds that withdrawn bid. Thus, a bids (gross bids less any applicable one. bidder that withdraws a bid will not be small business bidding credit). 172. When an applicant submits a responsible for any final withdrawal short-form application, ULS payment if there is a subsequent higher B. Final Payments automatically creates an ownership bid in the same or subsequent 167. Each winning bidder will be record. This record is not an FCC Form auction(s). required to submit the balance of the net 602, but may be used to pre-fill the FCC 162. 47 CFR 1.2104(g)(1) sets forth the amount of its winning bids within 10 Form 602 with the ownership payment obligations of a bidder that business days after the applicable information submitted on the withdraws a provisionally winning bid deadline for submitting down payments. applicant’s short-form application. on a license during the course of an Applicants must review the pre-filled C. Long-Form Application (FCC Form auction, and provides for the assessment information and confirm that it is 601) of interim bid withdrawal payments. In complete and accurate as of the filing the Auction 87 Comment Public Notice, 168. Within ten business days after date of the long-form application before the Bureau proposed to establish the release of the auction closing public certifying and submitting the FCC Form percentage at ten percent for Auction 87 notice, winning bidders must 602. Further instructions will be and sought comment on the proposal. electronically submit a properly provided to winning bidders in the The Bureau received no comments on completed long-form application (FCC auction closing public notice. this issue and adopts its proposal. Form 601) for the license(s) they won through Auction 87. Winning bidders E. Tribal Lands Bidding Credit vii. Round Results claiming eligibility for a small business 173. A winning bidder that intends to 163. Limited information about the bidding credit must demonstrate their use its license(s) to deploy facilities and results of a round will be made public eligibility for the bidding credit. Further provide services to federally recognized after the conclusion of the round. filing instructions will be provided to tribal lands that are unserved by any Specifically, after a round closes, the winning bidders in the auction closing telecommunications carrier or that have Bureau will make available for each public notice. a wireline penetration rate equal to or license, its current provisionally 169. Winning bidders organized as below 85 percent is eligible to receive a winning bid amount, the minimum bidding consortia must comply with the tribal lands bidding credit as set forth in acceptable bid amount for the following long-form application procedures 47 CFR 1.2107 and 1.2110(f). A tribal

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lands bidding credit is in addition to, auctions, and may take any other action Notice of Proposed Rulemaking on and separate from, any other bidding that it deems necessary, including FEC Standards of Conduct. credit for which a winning bidder may institution of proceedings to revoke any DRAFT ADVISORY OPINION 2010–01: Nevada qualify. existing licenses held by the applicant. 174. Unlike other bidding credits that State Democratic Party by its counsel, are requested prior to the auction, a G. Refund of Remaining Upfront Marc E. Elias and Graham M. Wilson. winning bidder applies for the tribal Payment Balance Management and Administrative lands bidding credit after the auction 178. After the auction, applicants that Matters. when it files its long-form application are not winning bidders or are winning Individuals who plan to attend and (FCC Form 601). When initially filing bidders whose upfront payment require special assistance, such as sign the long-form application, the winning exceeded the total net amount of their language interpretation or other bidder will be required to advise the winning bids may be entitled to a reasonable accommodations, should Commission whether it intends to seek refund of some or all of their upfront contact Darlene Harris, Acting a tribal lands bidding credit, for each payment. All refunds will be returned to Commission Secretary, at (202) 694– license won in the auction, by checking the payer of record, as identified on the 1040, at least 72 hours prior to the the designated box(es). After stating its FCC Form 159, unless the payer submits hearing date. intent to seek a tribal lands bidding written authorization instructing credit, the applicant will have 180 days otherwise. Bidders should not request a PERSON TO CONTACT FOR INFORMATION: from the close of the long-form refund of their upfront payments before Judith Ingram, Press Officer, Telephone: application filing window to amend its the Commission releases a public notice (202) 694–1220. application to select the specific tribal declaring the auction closed, identifying Signed: lands to be served and provide the the winning bidders, and establishing Darlene Harris, required tribal government the deadlines for submitting down certifications. Licensees receiving a payments, long-form applications, and Acting Secretary of the Commission. tribal lands bidding credit are subject to final payments. More detailed [FR Doc. 2010–3589 Filed 2–24–10; 8:45 am] performance criteria as set forth in 47 information on refunds is available in BILLING CODE 6715–01–M CFR 1.2110(f)(3)(vii). the Auction 87 Procedures Public F. Default and Disqualification Notice. 175. Any winning bidder that defaults Federal Communications Commission. FEDERAL MINE SAFETY AND HEALTH or is disqualified after the close of the William W. Huber, REVIEW COMMISSION auction (i.e., fails to remit the required Associate Chief, Auctions and Spectrum down payment within the prescribed Access Division, WTB. Sunshine Act Notice period of time, fails to submit a timely [FR Doc. 2010–3875 Filed 2–24–10; 8:45 am] long-form application, fails to make full BILLING CODE 6712–01–P February 17, 2010. payment, or is otherwise disqualified) TIME AND DATE: 10 a.m., Thursday, will be subject to the payments March 4, 2010. described in 47 CFR 1.2104(g)(2). The FEDERAL ELECTION COMMISSION payments include both a deficiency PLACE: The Richard V. Backley Hearing payment, equal to the difference Sunshine Act Notice Room, 9th Floor, 601 New Jersey between the amount of the bidder’s bid Avenue, NW., Washington, DC. and the amount of the winning bid the AGENCY: Federal Election Commission. STATUS: Open. next time a license covering the same DATE AND TIME: Wednesday, February 24, spectrum is won in an auction, plus an 2010, at 11:30 a.m. MATTERS TO BE CONSIDERED: The additional payment equal to a PLACE: 999 E Street, NW., Washington, Commission will consider and act upon percentage of the defaulter’s bid or of DC. the following in open session: Secretary the subsequent winning bid, whichever STATUS: This meeting will be closed to of Labor v. Wolf Run Mining Company, is less. the public. Docket No. WEVA 2008–804. (Issues 176. The percentage of the applicable ITEMS TO BE DISCUSSED: Compliance include whether a violation of a bid to be assessed as an additional matters pursuant to 2 U.S.C. 437g. safeguard notice issued by the Secretary payment for defaults in a particular Audits conducted pursuant to 2 may be designated as ‘‘significant and auction is established in advance of the U.S.C. 437g, 438(b), and Title 26, U.S.C. substantial.’’) auction. Accordingly, in the Auction 87 Matters concerning participation in Any person attending this meeting Comment Public Notice, the Bureau civil actions or proceedings or who requires special accessibility proposed to set the additional default arbitration. features and/or auxiliary aids, such as payment for this auction at 10 percent Internal personnel rules and sign language interpreters, must inform of the applicable bid. The Bureau procedures or matters affecting a the Commission in advance of those received no comments on this proposal particular employee. needs. Subject to 29 CFR 2706.150(a)(3) and therefore adopts the proposal. and 2706.160(d). 177. Finally, in the event of a default, * * * * * the Commission may re-auction the DATE AND TIME: Thursday, February 25, CONTACT PERSON FOR MORE INFORMATION: license or offer it to the next highest 2010, at 10 a.m. Jean Ellen (202) 434–9950/(202) 708– bidder (in descending order) at its final PLACE: 999 E Street, NW., Washington, 9300 for TDD Relay/1–800–877–8339 bid amount. In addition, if a default or DC (Ninth Floor). for toll free. disqualification involves gross STATUS: This meeting will be open to Jean H. Ellen, misconduct, misrepresentation, or bad the public. faith by an applicant, the Commission Chief Docket Clerk. may declare the applicant and its Items To Be Discussed [FR Doc. 2010–3995 Filed 2–23–10; 4:15 pm] principals ineligible to bid in future Correction and Approval of Minutes. BILLING CODE P

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